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OTIF in D365 F&O: Measure On‑Time In‑Full and Boost Procurement Performance

  • Beau Schwieso
  • 2 hours ago
  • 3 min read
Dad joke warm‑up: My kids asked why I track how often they clean their rooms “on time and in full.” I told them it is simple economics—if the delivery is late or missing a sock, the allowance supply chain breaks.




OTIF 101: What Does It Even Mean?

On‑Time In‑Full (OTIF) is the percentage of orders a supplier delivers at the promised time and in the exact quantity the buyer ordered.


Formula:

OTIF % = (Number of POs delivered on the confirmed date and in full ÷ Total POs received) × 100

Think of OTIF like your morning school‑bus run: showing up at 7:15 a.m. is useless if three kids are still at home, and arriving with everyone on board at 9 a.m. ruins first‑period math.


You need both timeliness and completeness.


Why OTIF Keeps Supply‑Chains (and CFOs) Sane

Pain if OTIF Tanks

Why You Should Care

Stock‑outs & back orders

Missed sales, angry customers

Rush freight & expediting fees

Margin erosion

Production line stoppages

Overtime labor, waste

Working‑capital bloat

Extra “just in case” inventory

A 5‑point OTIF drop at a $200 M food distributor can snowball into six‑figure expediting costs and lost shelf space in a single quarter. Not exactly pocket change. MRPeasy


Where OTIF Lives in D365 F&O

Area

What You See

How to Get There

Supply risk assessment workspace

OTIF tiles, vendor/Product drill‑downs, risk heat‑map

Procurement and sourcing > Workspaces > Supply risk assessment Microsoft Learn

Vendor performance Power BI

Trend charts for OTIF, lead‑time variance

Requires Entity Store refresh

Vendor scorecard reports

Printable PDF/Excel scorecards for quarterly reviews

Procurement and sourcing > Inquiries and reports > Vendor scorecards

Setup tip: Turn on Assess supply risks to prevent supply‑chain disruptions in Feature management, then schedule the VendSupplyRiskCacheDataSet refresh so buyers are not chasing yesterday’s data. Microsoft Learn

Procurement’s Playbook for Managing OTIF

  1. Define targets per category - A blanket 95 % goal sounds nice until you buy build‑to‑order machinery. Set thresholds that match reality.

  2. Automate alerts - Use Alerts or Business events to ping buyers when OTIF on an active supplier slips below target.

  3. Supplier collaboration portal - Let vendors see their own OTIF dashboard and upcoming POs in real time, reducing “Where’s my order?” e‑mails.

  4. Root‑cause review - Combine OTIF data with quality holds, ASN timeliness, and transport lead‑time variance. One bad packaging spec can tank an otherwise solid OTIF score.

  5. Dual‑sourcing & risk hedging - When a critical SKU’s OTIF dips, rerun MRP with approved alternate vendors to protect production.


Industry Snapshots

Industry

OTIF Headache

D365 Angle

Food distribution

Expired inventory and spoilage

Pair OTIF with catch weight tracking and FEFO picking to keep the salsa fresh.

Automotive OEM

Line‑side sequence misses

Kanban boards + vendor ASN accuracy deliver parts exactly when the robot arm needs them.

Apparel & retail

Seasonal drops and promo launches

OTIF dashboards plus Allocation planning module ensure size‑color runs land before TikTok opens the floodgates.

Quick‑Hit Best Practices

  • Start with 6 months of clean receipt data, because one bad migration can skew OTIF for weeks.

  • Tie OTIF to contract SLAs so under‑performance triggers automatic chargebacks or scorecard action plans.

  • Refresh Entity Store nightly or leverage Synapse Link for near‑real‑time visuals.

  • Gamify performance and publish a leaderboard and watch suppliers fight for gold status.


Try the OTIF Readiness Quiz

  1. Do you measure delivery date against confirmed or requested dates?

  2. How often is your data cache refreshed?

  3. Can suppliers self‑service their OTIF score today?


Score three out of three and you are ready to brag at your next quarterly business review.


Sign‑off: If your supply chain were a video game, OTIF is the final boss. Manage the metric, and you unlock “Procurement Legend” status. Plus the CFO might even smile. Now get out there and level‑up those deliveries!


DynamicsDad

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